Mit Great

An organization will try to plan for vacancies and market fluctuations but derived demand can be difficult to plan for if you have a product or service that has very little discernible

The current demand forecasting method is based on qualitative techniques more than quantitative ones. If the forecast is not accurate, the company would carry both inventory and stock out costs. It might lose customers due to shortage of supply or carry additional holding costs due to excess production. If the actual demand doesn’t match the forecast ones, and the forecast was too high, this will result in high inventories, obsolescence, asset disposals, and increased carrying costs. When a forecast is too low, the customer resorts to a competitive product or retailer. A supplier could lose both sales and shelf space at that retail location forever if their predictions continue to be inaccurate. The tolerance level of the average consumer

• What mistakes happen during the designing project/mobilization phases? How did these mistakes impact the first 6 weeks of the project? Why is Chen finding the situation so difficult?

phase the original outline plan was materially altered. The most important change was the mistake of

Many changes were made and very little remained the same. In order to find a solution for

* Forecasting is an impartial strategic ingredient that will ensure apt base for reputable planning. Our forecast is always the first step in developing plans in running the business along with our future plans of growth strategies. With this tool, we are able to anticipate our sales within reason that then can allow for us to control our costs in conjunction with inventory which will then help us to enhance our customer service. Sales forecasting is a vital strategic tactic in our company’s methodology.

*This was a build/design project. The idea of making design decisions after construction was underway is an recipe for catastrophe in a project of this magnitude. The city's insistence that this be held to a tight schedule yet allowing multiple design changes was unfortunate. There were too many players, lots of pressure, and the whole project was run by committee with differing agendas. The project administrators had to balance administrative, political, and social imperatives.

The film industry has continuously changed since its inception due to rapid technology advancements. Camera technology has been a key factor that has influenced the growth of filmmaking. The first motion picture in the world was produced in the early 1880s, and the first public screening occurred ten years later. It didn’t take long for the quality of films to improve as new filmmaking equipment emerged. Ever since the first movie was produced, the film industry has been continuously changing in response to emerging filmmaking technology. Introduction of digital photography and digital data storage along with the development of internet significantly influenced the film industry (Barsam, 2015). These technologies contributed

Support: The inventory increase in 1997, YOY, was 58%. Additionally, the COGS to revenue ratio reduced from to 72% in 1997. This combination of increase in inventory and reduction in COGS as a percentage of revenue seems to indicate that the fixed costs may have been spread over a larger base through over production, thereby causing the COGS to reduce. This may be a cause for concern and could be a potential red flag.

In 2004, the firm overestimated the demand for a new product family for the high end consumer market (need to extend the scheduled end-of-life by six months) and underestimated the cannibalization of the ShootXL by another newly introduced product the OptixR. Leitax didn't have a single, unified forecast to coordinate their operations. Sales developed their own projections, which production distrusted because the sales organization has the incentive to produce low-ball projections so they can "beat the mark."

But even this is not possible in case of a new product or innovation. A forecast of sales, demand, cash, requirements and several such business valuables are extremely essential for a business in order to be able to appropriately plan and conduct its operations in an effective and efficient manner. Yet, forecasts cannot be made accurately as there are several factors and changes in the current environment that leads to variations in forecasts and impacts or causes a manager to make changes in the forecasts.

While Eastman Kodak has remained an industry leader in the sales of film for photo-imaging, over the past five years Kodak has underestimated the demand for digital cameras. Digital cameras require no film whatsoever and with Kodak’s main line of production being film Kodak has suffered great losses in net profit. Just in 2004 Camera film sales have been falling even than projected. The Photo Marketing Association predicted a six percent drop in film sales and Kodak projected an even more dismal 10-12 percent drop in film sales. The actual drop in sales reached an unforeseen 18%. In 2003 digital camera sales were greater than traditional film camera sales for the first time.

Digital camera market has enjoyed tremendous growth since it was introduced in the photographic industry. Starting in 1998, price has been falling rapidly. In addition, the development of CMOS allowed digital camera to not only capture professional market, but also enter consumer market. It was estimated that in 2006 forecast would peak with 63% penetration rate for digital cameras in the US. After 2006, the growth rate was expected to fall negative.

Lack of project management clarity: the planning activity had lot of material but lacked content, clear action items and lack of consensus on the milestones. The difficulties in the project only increased with time and a more performance driven style would have kept things on track if introduced early on.

Improved technology and reduction in price made the digital camera industry grow rapidly and inject life into a very stagnant sector. Worldwide sales growth rate for the digital cameras had double digit growth for almost 15 years. However that growth was slowing and was starting to reverse from a strong 25% in 2005 to a weak 5.2% in 2006 and into negative territory 2007 and beyond. This growth masked the problems in Leitax's supply chain.